Australian economists raised their forecasts for iron ore and metallurgical coal prices for 2018 and 2019, but are of the opinion that prices will fall further over that time, according to a resource and energy report released on Monday.
The report, which is released quarterly by the Australian Department of Industry, Innovation and Science, says that FOB Australia iron ore will average $ 61.80 /t this year, up $ 10.30 /t from the forecast presented in October-December 2017 and $ 11.30 per ton higher than the forecast of the previous year.
“The price of iron ore will be higher than expected in early 2018, and some short-term support is also expected from the continued robustness of steel prices and production in China,” the Canberra-based division said in a report.
Despite the revised outlook, prices are expected to fall in the long term.
“The iron ore price is expected to decline to $ 49 /t FOB Australia in 2020, as a result of a slowdown in demand and supply growth, before a moderate recovery to $ 53 /t in 2023 as supply growth slows," report.
"The forecast is supported by the assumption that, firstly, the price will tend to the break-even level required by producers and to meet demand, and secondly, that a small (5%) share of producers (mainly in China) will be unprofitable," he added is he.
Australian government raises iron ore price forecasts for 2018
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Azovpromstal® 10 April 2018 г. 10:17 |
